Bearish Three Inside Down

• The second day is a red day where the body is engulfed by the body of the first

• The third day is a red candle with a lower close than the previous day

During an uptrend a large upward price movement occurs, illustrated by a long blue candlestick. The price is then driven down, as shown by a red candlestick, reversing some of the upward movement from the previous day. The reversal pattern is confirmed with the third days red candle completes the bearish pattern.